Pharmaceutical sector shines amid political and economic uncertainty

Despite political and economic uncertainty, most listed pharmaceutical companies reported strong revenue and profit growth in the October–December quarter and the first half of the fiscal year.

Analysts said higher sales, lower costs, easing finance expenses, efficient working capital management, stable demand, steady exchange rates, and operational efficiency drove the improved performance.

Renata PLC, one of the country's leading drug manufacturers, reported 25% year-on-year profit growth in the first half of the fiscal year. Consolidated profit rose to Tk156.26 crore in July–December from Tk125.08 crore a year earlier, while EPS increased to Tk13.58 from Tk10.83. Consolidated revenue grew 6.56% to Tk2,223.84 crore.

Pharmaceutical product revenue, accounting for 80.7% of total revenue, rose 10% year-on-year, driven entirely by higher sales volumes, while the animal health segment remained flat. Export revenue, including subsidiary income, declined 10.1%, and contract manufacturing revenue fell 28.4%.

Export income rose 8.2% in the first quarter of FY26 but dropped 23.4% in the second quarter after export-bound inventory was damaged in a fire at Dhaka airport on October 19, 2025, leading to deferred orders. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) increased 20.6% due to operational efficiency, while financing costs fell 7.3% following capital restructuring.

Square Pharmaceuticals, the country's largest drug maker, also posted strong growth. In the first half of the fiscal year, consolidated revenue rose 15% year-on-year to Tk4,338 crore, while net profit increased 16% to Tk1,467 crore, with EPS reaching Tk16.56. In the October–December quarter alone, revenue grew 9% to Tk2,179 crore and net profit rose 10% to Tk727 crore, reflecting sustained domestic demand despite rising sector-wide costs.

The results include contributions from foreign subsidiary Square Pharmaceuticals Kenya EPZ Ltd, local subsidiary Square Lifesciences Ltd, and associate companies Square Textiles, Square Fashions, and Square Hospitals, underscoring the group's diversified operations.

Advanced Chemical Industries (ACI) reported an 18% year-on-year increase in consolidated revenue to Tk7,794 crore in the first half of the fiscal year, up from Tk6,619 crore a year earlier. The company posted a consolidated net profit of Tk30 crore, reversing a net loss of Tk64 crore in the same period last year.

ACI said gross profit growth outpaced operating expenses due to strong performance across key segments, though borrowing costs rose amid higher interest rates and increased funding needs for working capital and strategic investments.

Navana Pharmaceuticals recorded a sharp turnaround in the October-December quarter, driven by higher sales, improved margins, lower finance costs, and stronger operating cash flows. Diluted EPS rose 65% year-on-year to Tk1.65 from Tk1.

The ACME Laboratories posted 15.75% year-on-year revenue growth in the October–December quarter, with EPS rising to Tk3.10 from Tk2.86. For the July-December period, EPS increased to Tk6.11 from Tk5.47.

Beacon Pharmaceuticals reported a 29.32% increase in earnings in the October–December quarter, while six-month EPS rose to Tk4.73 from Tk3.47 a year earlier.